More Bank Write-Downs

By

Matt Phillips

Updated Nov. 9, 2007 6:26 p.m. ET

The subprime soap opera continued Friday with more rumors, denials and confessions swirling around the jittery credit markets.

Late Friday, two more big U.S. banks warned that conditions in credit markets could hit their fourth-quarter earnings. In an SEC filing, Bank of America, the second-largest U.S. bank by assets, said it expects "significant dislocation" in the market for collateralized debt obligations or CDOs -- those securities backed by bundles of assets including mortgages. J.P. Morgan Chase said in a...